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You are about to buy a business that is worth $200,000, but you do not have enough money to purchase the business entirely. You have a total of $90,000 in savings and you are looking at different financing options. Provide information for the following:
Question 1: Explain the advantages of equity financing and debt financing
Question 2: Explain the disadvantages of equity financing and debt financing
Question 3: Provide an example of equity financing
Question 4: Provide an example of debt financing
Question 5: Explain which type of long-term liability financing you would choose to buy the business?
The following transactions pertained to DEF Tracking Services for the year ending December 31, 2019: Paid P45,000 for a two-year earthquake insurance policy.
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